Plan set for solution to ailing tax districtSuperior has a plan to help a financially distressed tax district by banking on a successful one.
By: Shelley Nelson, Superior Telegram
Superior has a plan to help a financially distressed tax district by banking on a successful one.
Superior’s Plan Commission approved the plan Wednesday. The decision comes on the heels of good news for the distressed district. A 50-unit senior housing facility slated for construction next spring could relieve some of the burden on the successful district.
The ailing district was created four months before a national financial crisis stalled a planned office and retail complex on the site of the former Central School. That left the city with no income from the district to repay debt incurred to buy and raze 20-plus homes for redevelopment that extended from North 13th to Belknap streets between Grand and Fisher avenues.
City taxpayers have been picking up the tab, but the city’s general fund will be reimbursed if the council and other taxing authorities approve the plan.
Superior isn’t alone in the problem, which prompted the Legislature to change the law to allow communities to use proceeds from a successful tax district to bolster one that isn’t generating sufficient revenue to repay its debts, said Port and Planning Director Jason Serck.
“Superior is far from unique” and it’s going on throughout the state, he said.
After a review of the financial implications and limitations the plan imposes on the tax districts, the Plan Commission adopted the plan. The Council considers the plan Nov. 5, and if approved, a committee of officials from taxing authorities in Superior would consider the plan Nov. 18.
Under the plan, the Interstate Industrial Park tax district in North End would be extended to pay for the district in the area of the former Central School.